When the debt limit is close to being breached, or when a suspension of the ceiling is nearing, lawmakers would have to act to avoid serious economic and budgetary consequences.
For 2023, the Congressional Budget Office (CBO) estimated in May that the federal budget deficit will total $1.5 trillion.
According to CBO, provisions in the Fiscal Responsibility Act of 2023 will result in a $1.5 trillion decrease to the deficit over the next 10 years.
The country’s fiscal trajectory got notably worse over the past year.
Let’s look at the trends in discretionary spending, and how effective they are in reducing the debt.
As part of a potential deal to raise the debt ceiling, policymakers are considering rescinding remaining funding for COVID-19 relief.
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
The treatment of carried interest continues to be one of the most controversial elements of the U.S. tax code.
SNAP is the largest federal program aimed at combating hunger and food insecurity among low-income Americans.
The Federal Reserve plays an important role in stabilizing the country’s economy.
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